Since I've made an enemy of every biotech portfolio manager and analyst known to man, I may as well tell you where to go for good info.....
Those who have a nose for stories....... Karen Bernstein, Stephen Edgington, Cynthia Robbins-Roth.... little in the way of advice, but read between the lines for a couple of years. You'll then be among the pros.
McCamant and Sturza..... lots of advice. Ignore it, but look carefully at their picks because there will be gems.
A considerate, hard-working contributor here at SI, Dr. Harry Tracy, has been reporting on a clobbered subsector, neuro. If the subsector ever recovers (I have my bets placed, as many know), he'll give you a leg up IMO. Again, do your own homework!
I mentioned a couple of weeks ago that I'll be cutting back here at SI. I'm in a unique position. Our sector has gotten killed, apart from top-tier. Nonetheless, I'm widely followed, the only biofreak in the SI's 150 "most PeopleMarked".
Why? Because there are tons of reporters, fund managers and analysts that lurk here at SI for biotech "feed". Many of them try to communicate with me anonymously in private messages, but I generally refuse to engage them. These individuals are, often, getting rich as the sector implodes. They have vested interests, and they are paid to maintain them.
This is my opinion, please read it carefully. It has my own personal performance as a basis, but please note that such personal performance is enhanced by close communications with the best biotech investors on earth...... individuals like Jim Silverman, Peter Suzman, Kevin Jones and many others.
The biotech sector is the victim of clown analysts and fund managers with vested interests. The companies that have combined good science with sound business plans have generally thrived. The sector has never been in a better position, given adequate funding, for healthy returns.
It is unfortunate that the industry as a whole has not been effective in policing itself, in pointing to the companies that do not have science to back the vision. We have always been victimized by management teams which run semi-scams.
The clown analysts and fund managers (with vested interests) do not point at the scams to warn naive investors, or to deter those who want to make a buck at someone else's expense.
It is unfortunate that those in a position of responsibility also invariably have vested interests. This confuses Joe Investor and leads to the assembly of mediocre portfolios.
The VCs want their companies to succeed, and don't pull the plug when it's obvious that there is trouble. They hang around, waiting for Joe Investor to be confused by the industry gurus. They stuck Joe as often as they could, but then the sector eventually got a bad rep. After this happened, they decided to label the stocks in the sector as Roach Motels.
This disastrous scene is now endangering many damn good medicines. Companies with thriving projects and viable business plans can't attract the investment dollars that they need. If you look at the sector stalwarts, you will realize that investment dollars, when guided by wisdom rather than by vested interests, blossom.
I'm ticked. The very same individuals that have gotten rich while reducing the sector to this critical level are lurking here at SI and taking the best ideas without regard for acknowledgement. And, even with the guidance, they'll still manage to screw up..... vested interests.
I have clear vision. I know what has happened. Most of the dogma out there is bull.
I don't give a damn if those who read this think that it's filled with ego. For those who have expressed appreciation for the efforts of SI biofreaks, thanks! However, if one points at the potential downside in an investment, one's enemies can use it. I've therefore reached a point where my own "devil's advocate" commentary is being used against me, where my own analysis is hurting my portfolio. I therefore need to cut back. Hedge fund managers will use anything, most often, IMO, out of context and without conscience or remorse.
Again, the very same people who have brought you this second- and third-tier mess, who have leant such bad advice, have gotten wealthy doing such. Focused management teams, with a vision on the clinic, patients and disease resolution, are stuck holding the bag.
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